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FinCEN Issues Human Trafficking, COVID-19 Insurance Fraud Advisories

FinCEN Issues Human Trafficking, COVID-19 Insurance Fraud Advisories

Posted: Oct 21 2020
FinCEN has issued advisories to banks and other financial institutions regarding human trafficking and COVID-19 insurance fraud scams. The advisories are designed to assist the industry in identifying new financial and behavioral red flags on these issues.

Specifically, FinCEN notes that the pandemic has aggravated the conditions that lead to human trafficking and can occur in a wide variety of industries, including massage parlors, restaurants and bars. Banks are encouraged to report possible human trafficking by filing a SAR, using the term “Human Trafficking FIN-2020-A008” and checking SAR Field 38(h) on the form.

The insurance fraud advisory alerts banks to unemployment insurance fraud scams associated with the pandemic and details associated red flags and how and when to report suspicious activity. Types of insurance fraud observed during the pandemic include fictitious employer-employee fraud, employer-employee collusion fraud, misrepresentation of income fraud, insider fraud and identity-related fraud.

To read FinCEN’s human trafficking advisory, visit: https://www.fincen.gov/sites/default/files/advisory/2020-10-15/Advisory%20Human%20Trafficking%20508%20FINAL_0.pdf
 
To read the insurance fraud scam advisory, visit: https://www.fincen.gov/sites/default/files/advisory/2020-10-13/Advisory%20Unemployment%20Insurance%20COVID%2019%20508%20Final.pdf
 
 

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